Station Casinos reports first quarter loss

May 18, 2010 10:14 AM

Station Casinos, the dominant operator in the Southern Nevada market, reported a first quarter loss of $53.5 million on Monday, compared to a net loss of $33.7 million reported in last year’s first quarter.

The loss was based on net revenues of $249.4 million for the quarter ended March 31, a decrease of 11.8 percent compared to the first quarter of 2009.

Net cash flow for the quarter, reported as adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), was $79.4 million, a decrease of 18.9% compared to last year’s first quarter.

In connection with the company’s Chapter 11 case to reorganize, the company recorded net reorganization items of $19.3 million in the first quarter. These reorganization items represent professional fees and other costs incurred as a direct result of the Chapter 11 cases of $20.2 million, partially offset by an adjustment of swap carrying values of $0.9 million.

In addition, during the first quarter, Station incurred $6.7 million in write-downs and other charges, of which $6.1 million related to a legal settlement, $0.1 million related to net losses on asset disposals, and $0.5 million related to severance expense.

Most of Station’s properties are in the Las Vegas market, and those casinos, excluding Green Valley Ranch and Aliante Station (which are joint-ventured with other operators), generated revenues of $227.6 million, a 12.1% decrease compared to the prior year’s first quarter. Adjusted EBITDA from these operations decreased 17.7% to $71.7 million from $87.1 million in the same period in the prior year.

Overall, the Las Vegas properties reported a net loss of $13 million for the first quarter as compared to a net loss of $5.7 million in the same period in the prior year.

In the Southern Nevada market, Station owns and operates Red Rock Casino Resort Spa, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Rancho and Wild Wild West Gambling Hall & Hotel in Las Vegas, Nevada, Texas Station Gambling Hall & Hotel and Fiesta Rancho Casino Hotel in North Las Vegas, Nevada, and Sunset Station Hotel & Casino, Fiesta Henderson Casino Hotel, Wildfire Boulder, Gold Rush Casino and Lake Mead Casino in Henderson, Nevada.

Station also owns a 50% interest in Green Valley Ranch Station Casino, Barley’s Casino & Brewing Company, The Greens and Wildfire Lanes in Henderson, Nevada, a 50% interest in Aliante Station Casino + Hotel in North Las Vegas, Nevada and a 6.7% interest in the joint venture that owns the Palms Casino Resort in Las Vegas, Nevada. In addition, Station manages Thunder Valley Casino near Sacramento, California on behalf of the United Auburn Indian Community.